Harbour Grace hooks new business: Quality Bait Services of Canada

Industry, Trade and Technology Minister Sandra C. Kelly, Carbonear-Harbour Grace MHA George Sweeney, and Harbour Grace Mayor Don Coombs joined Clement Drake, president of Quality Bait Services of Canada Inc., today for the official opening of his new company, which manufactures bait and other products for the fishing industry.

The company has acquired the full, complete and unrestricted Canadian and Cuban rights to the production and distribution of a unique bait product. The product is manufactured using a patented process of converting fish by-products into a valuable, dependable and affordable source of trap bait for shellfish such as lobster and crab. The product and the bait bag have been tested in early stages with local fish harvesters, who are enthusiastic about the potential for significant savings on their bait costs.

"The current type of bait used by fish harvesters is brought in from outside the province and must be held in cold storage until it is needed. With its longer shelf life and convenient packaging, the product that we are manufacturing introduces an innovative approach to the bait needs of the fishing industry in Newfoundland and Labrador," said Mr. Drake. "There is also enormous opportunity for us to grow this business by expanding into markets across Canada, and in other parts of the world."

The bait product operation recently had 17 people employed and expects to have 24 employees when it restarts operations next spring. In addition, approximately 10 people will be employed through spin-off activity with bait bag production.

"The opening of Quality Bait Services of Canada is an important first step to creating new jobs in this area, and hopefully it is the first of many more business opportunities that will come here," said George Sweeney, MHA - Carbonear-Harbour Grace.

During the official opening, Minister Kelly announced that Quality Bait Services of Canada Inc. has received Economic Diversification and Growth Enterprises (EDGE) status.

"I am pleased that the EDGE program was a factor in Quality Bait Services of Canada creating this new business opportunity in Harbour Grace with an innovative product," said Minister Kelly. "Traditional industries like the fishery are the foundation upon which many other industries, such as manufacturing, are built, and it is exciting to see continued diversification in our economy."

The EDGE program is available to both new and expanding businesses. Companies meeting EDGE criteria are eligible for a 10-year tax break from provincial corporate income tax and provincial payroll tax, followed by a five year phase-in of these taxes, unserviced Crown land for a nominal fee, and access to a facilitator who will help obtain the required permits and licences associated with start up or expansion. To be designated an EDGE corporation, an applicant must show potential for minimum capital investment of $300,000 or incremental sales of $500,000 annually, the potential to create and maintain at least 10 permanent jobs, and must provide a substantial net economic benefit to the province, among other requirements.

Harbour Grace Mayor Don Coombs, who was also at the event, commented: "The official opening of Quality Bait Services of Canada is an exciting event for Harbour Grace. I am pleased to welcome this new business, which is creating employment and generating new opportunities in our community."

Media contact:

Jacqueline Simon, Communications, Industry, Trade and Technology , (709) 729-0050
Clement Drake, President, Quality Bait Services of Canada Inc., (709) 596-2499.

2000 11 17 2:35 p.m.